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Gross profit as a percentage of net sales was 51.7 percent for the year ended December 31, 2012, compared with 52.5 percent a year earlier.

Operating expenses for the 2012 year increased to $515.0 million from $437.9 million for 2011. Operating income for the year ended December 31, 2012 increased 20.6 percent to $550.6 million from $456.4 million a year ago.

Net income for the twelve months of 2012 rose 18.8 percent to $340.0 million, or $1.86 per diluted share, compared with $286.2 million, or $1.53 per diluted share, for 2011.

Investor Conference Call

The Company will host an investor conference call today, February 27, 2013, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call will be open to all interested investors through a live audio web broadcast via the internet at
www.monsterbevcorp.com in the "Events & Presentations" section. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.

Gross sales is used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and overall Company performance. The use of gross sales allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross sales provides a useful measure of our operating performance. Gross sales is not a measure that is recognized under accounting principles generally accepted in the United States of America ("GAAP") and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross sales may not be comparable to similarly titled measures used by other companies, as gross sales has been defined by our internal reporting practices. In addition, gross sales may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.

Caution Concerning Forward-Looking Statements

Certain statements made in this announcement may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding the expectations of management with respect to our future operating results and other future events including revenues and profitability. Management cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of the Company, that could cause actual results and events to differ materially from the statements made herein. Such risks and uncertainties include, but are not limited to, the following: unanticipated litigation concerning the Company's products; the current uncertainty and volatility in the national and global economy; changes in consumer preferences; changes in demand due to both domestic and international economic conditions; activities and strategies of competitors, including the introduction of new products and competitive pricing and/or marketing of similar products; actual performance of the parties under the new distribution agreements; potential disruptions arising out of the transition of certain territories to new distributors; changes in sales levels by existing distributors; unanticipated costs incurred in connection with the termination of existing distribution agreements or the transition to new distributors; changes in the price and/or availability of raw materials; other supply issues, including the availability of products and/or suitable production facilities; product distribution and placement decisions by retailers; changes in governmental regulation; the imposition of new and/or increased excise and/or sales or other taxes on our products; criticism of energy drinks and/or the energy drink market generally; the impact of proposals to limit or restrict the sale of energy drinks to minors and/or persons below a specified age and/or restrict the venues and/or the size of containers in which energy drinks can be sold; political, legislative or other governmental actions or events, including the outcome of any state attorney general and/or government or quasi-government agency inquiries, in one or more regions in which we operate. For a more detailed discussion of these and other risks that could affect our operating results, see the Company's reports filed with the Securities and Exchange Commission. The Company's actual results could differ materially from those contained in the forward-looking statements. The Company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

(tables below)

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND OTHER INFORMATION

FOR THE THREE-AND TWELVE-MONTHS ENDED DECEMBER 31, 2012 AND 2011

(In Thousands, Except Per Share Amounts) (Unaudited)

Three-Months Ended

Twelve-Months Ended

December 31,

December 31,

2012

2011

2012

2011

Gross sales, net of discounts and returns*

$ 545,044

$ 467,310

$ 2,373,499

$ 1,950,490

Less: Promotional and other allowances**

73,527

57,353

312,797

247,260

Net sales

471,517

409,957

2,060,702

1,703,230

Cost of sales

227,629

195,713

995,046

808,921

Gross profit

243,888

214,244

1,065,656

894,309

Gross profit margin as a percentage of net sales

51.7%

52.3%

51.7%

52.5%

Operating expenses

130,008

110,847

515,033

437,886

Operating expenses as a percentage of net sales

27.6%

27.0%

25.0%

25.7%

Operating income

113,880

103,397

550,623

456,423

Operating income as a percentage of net sales

24.2%

25.2%

26.7%

26.8%

Other (expense) income:

Interest and other (expense) income, net

(2,511)

1,055

(2,256)

1,619

Gain (loss) on investment and put option, net

202

78

787

(772)

Total other (expense) income

(2,309)

1,133

(1,469)

847

Income before provision for income taxes

111,571

104,530

549,154

457,270

Provision for income taxes

43,589

39,994

209,134

171,051

Net income

$ 67,982

$ 64,536

$ 340,020

$ 286,219

Net income as a percentage of net sales

14.4%

15.7%

16.5%

16.8%

Net income per common share:

Basic

$ 0.40

$ 0.37

$ 1.96

$ 1.62

Diluted

$ 0.39

$ 0.35

$ 1.86

$ 1.53

Weighted average number of shares of common stock and common stock equivalents:

Basic

168,846

174,124

173,712

176,212

Diluted

176,112

184,926

183,083

186,674

Case sales (in thousands)

(in 192-ounce case equivalents)

46,386

39,431

202,918

164,661

Average net sales price per case

$ 10.17

$ 10.40

$ 10.16

$ 10.34

*
Gross sales is used internally by management as an indicator of and to monitor operating performance, including sales performance of particular products, salesperson performance, product growth or declines and overall Company performance. The use of gross sales allows evaluation of sales performance before the effect of any promotional items, which can mask certain performance issues. We therefore believe that the presentation of gross sales provides a useful measure of our operating performance. Gross sales is not a measure that is recognized under GAAP and should not be considered as an alternative to net sales, which is determined in accordance with GAAP, and should not be used alone as an indicator of operating performance in place of net sales. Additionally, gross sales may not be comparable to similarly titled measures used by other companies, as gross sales has been defined by our internal reporting practices. In addition, gross sales may not be realized in the form of cash receipts as promotional payments and allowances may be deducted from payments received from certain customers.

**Although the expenditures described in this line item are determined in accordance with GAAP and meet GAAP requirements, the disclosure thereof does not conform with GAAP presentation requirements. Additionally, our definition of promotional and other allowances may not be comparable to similar items presented by other companies. Promotional and other allowances primarily include consideration given to the Company's distributors or retail customers including, but not limited to the following: (i) discounts granted off list prices to support price promotions to end-consumers by retailers; (ii) reimbursements given to the Company's distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products; (iii) the Company's agreed share of fees given to distributors and/or directly to retailers for advertising, in-store marketing and promotional activities; (iv) the Company's agreed share of slotting, shelf space allowances and other fees given directly to retailers; (v) incentives given to the Company's distributors and/or retailers for achieving or exceeding certain predetermined sales goals; (vi) discounted or free products; (vii) contractual fees given to the Company's distributors related to sales made by the Company direct to certain customers that fall within the distributors' sales territories; and (viii) commissions paid to our customers. The presentation of promotional and other allowances facilitates an evaluation of their impact on the determination of net sales and the spending levels incurred or correlated with such sales. Promotional and other allowances constitute a material portion of our marketing activities. The Company's promotional allowance programs with its numerous distributors and/or retailers are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, ranging from one week to one year.

Product Features:

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